Founders Fund reports zero ETHZilla stake as Ether treasury firms face pressure

The amended disclosure lists no beneficial ownership of ETHZilla common stock as of 31 December 2025. The same group had previously reported a 7.5% stake on 4 August 2025, when the company was still known as 180 Life Sciences Corp. In that filing, the entities disclosed beneficial ownership of 11,592,241 shares, representing 7.5% of 154,032,084 shares outstanding. The position was valued at roughly $40 million at the time, based on the stock trading near $3.50 in early August.

ETHZilla emerged in 2025 after 180 Life Sciences raised $425 million in a private placement on 29 July 2025 and outlined an Ether-focused treasury strategy alongside a corporate rebrand. The company later announced a $350 million add-on convertible debenture investment on 22 September 2025 to expand its balance-sheet strategy and deploy capital across Ethereum-linked opportunities, including decentralized finance and tokenized assets. Public updates during the pivot indicated ETHZilla had accumulated a six-figure Ether position.

As markets cooled, ETHZilla reduced exposure. On 22 December 2025, the company disclosed it had sold 24,291 Ether for $74.5 million at an average price of $3,068.69 per token, using the proceeds to address debt obligations. The sale left ETHZilla with roughly 69,800 ETH, based on figures cited in the disclosure.

The Founders Fund exit lands as other Ether-treasury strategies adjust to tighter conditions. BitMine Immersion Technologies disclosed an additional 40,613 ETH purchase on 9 February 2026, taking total holdings above 4.3 million ETH, while Trend Research moved to unwind its position, transferring 651,757 ETH on 8 February 2026 and locking in a large realized loss, according to market trackers.

As GNcrypto wrote on 12 February 2026, Fundstrat head of research Tom Lee argued ether has repeatedly staged V-shaped rebounds after drawdowns of more than 50% and pointed to a potential downside level near $1,890 after the early-February selloff. The report also noted staking demand rising during the slide, with ValidatorQueue data showing a record 71-day entry wait and about 4 million ETH in the validator queue, suggesting more supply is being locked up even as ETH struggled to hold $2,000.